Nifty continues to drift downwards, in spite of gap up openings. Bearishness holds.
As discussed yesterday, Bears gained momentum on the Nifty, as in spite of a 32 point gap up opening, the Nifty struggled at those levels, and gave up all the gains, to close with a minor gain of just 2 points. The Nifty yet again took support at the developing 50DMA levels, and the Bears were unable to breach the previous day's lows, which was the chink in their armor. Our trading plan (a) got triggered, never even threatened to meet the SL, and by the EOD we could book out with a profit of 28 points.
1) The Elder Ray readings : Bull Power rises from -47 to -18 Bear Power reduces from -70 to -56 indicating that the Bulls are clawing back, but the Bears are still more powerful. For today, the Bulls need to overcome the levels of 6010 to regain their lost grounds, whereas the Bears need to breach the Nifty below the levels of 5940 to maintain their downwards momentum.
2) The Nifty has yet again closed below all its key EMAs but above all its key DMAs. As said above, the 50DMA at 5954 is a key level to watch out for.
3) The stochastics are well and deep into the oversold zone.
4) In the above chart, the volumes have increased with the stagnation in the Nifty, indicating that some sort of accumulation is happening underlying. The MACD has stopped falling but still is in the negative. The ADX is suggesting a slowing of the bearish momentum, but bears are still in its favor. The Parabolic SAR continues to give out its sell signal with a SL at 6093.
5) Considering the above, our trading plan for the day is as under.
a) Around 5980 we will open fresh short positions with a SL at 6000 and a target of 5940. We will add to these short positions only below 5920.
b) Around 5935 we will open fresh long positions with a SL of 5920 and a target of 5975. We will add to these long positions only above 6000.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, Bears gained momentum on the Nifty, as in spite of a 32 point gap up opening, the Nifty struggled at those levels, and gave up all the gains, to close with a minor gain of just 2 points. The Nifty yet again took support at the developing 50DMA levels, and the Bears were unable to breach the previous day's lows, which was the chink in their armor. Our trading plan (a) got triggered, never even threatened to meet the SL, and by the EOD we could book out with a profit of 28 points.
1) The Elder Ray readings : Bull Power rises from -47 to -18 Bear Power reduces from -70 to -56 indicating that the Bulls are clawing back, but the Bears are still more powerful. For today, the Bulls need to overcome the levels of 6010 to regain their lost grounds, whereas the Bears need to breach the Nifty below the levels of 5940 to maintain their downwards momentum.
2) The Nifty has yet again closed below all its key EMAs but above all its key DMAs. As said above, the 50DMA at 5954 is a key level to watch out for.
3) The stochastics are well and deep into the oversold zone.
4) In the above chart, the volumes have increased with the stagnation in the Nifty, indicating that some sort of accumulation is happening underlying. The MACD has stopped falling but still is in the negative. The ADX is suggesting a slowing of the bearish momentum, but bears are still in its favor. The Parabolic SAR continues to give out its sell signal with a SL at 6093.
5) Considering the above, our trading plan for the day is as under.
a) Around 5980 we will open fresh short positions with a SL at 6000 and a target of 5940. We will add to these short positions only below 5920.
b) Around 5935 we will open fresh long positions with a SL of 5920 and a target of 5975. We will add to these long positions only above 6000.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (b) hit its target without actually triggering. Market opened just a whisker above our defined entry point, and hence have not taken that trade yet.
ReplyDeleteWaiting for Nifty to touch 5980 where our trading plan(a) triggers.
Now trading plan(a) also hits its target without actually triggering and missing our planned entry point by a whisker too.
ReplyDeleteOpened long position at 5937 as per trading plan(b) with a SL of 5920.
ReplyDeleteSquared off long positions at 5942 with a small profit of 5 points.
ReplyDelete